Confused about a specific term or acronym? Solve the mysteries of terminology with this informative resource. Updated regularly with industry-specific vocabulary and concepts, the Glossary provides easy-to-understand definitions of tax-related terms.


NA Not Applicable.

NAC See New Account Coordinator.

NACHA See National Automated Clearing House Association.

National Automated Clearing House Association (NAC A banking industry trade association that promotes the rules and operating guidelines for electronic payments through the ACH Network. NACHA's members provide automatic debit and deposit service for companies and consumers.

Negative Reserve Balance When the unemployment insurance benefit charges against an employer reserve account have exceeded the contributions paid. Some states will "write off" the negative balance amount to assist employers in maintaining account solvency. The "write off" can have negative effects to the employer tax rate, such as mandatory rate increases up to the maximum rate. The increase may be for one or more years, depending on the state regulations.

Negative Wage Chargeback A charge reflected on an ADP Tax Filing Service invoice for tax credits taken for Negative Wages. Because some state agencies do not permit the reporting of negative wages for an employee, ADP changes the value to zero for reporting purposes and charges the employer for the reported payroll tax. Once an amendment is filed for the prior quarter, the employer will obtain a refund or credit from the agency.

Negative Wages Prior quarter adjustments to an employee's wages input in the current quarter and resulting in negative quarter-to-date (QTD) wages for an employee.

Net Pay That part of an employee’s wages that remains after all deductions have been subtracted (taxes, health insurance, benefits, etc.)

New Account Coordinator (NAC) An ADP associate responsible for coordinating the implementation process and paperwork for all new payroll clients.

New Employer/Non-Merit Rate In most cases, an employer newly subject to employment is assigned a new employer or non-merit unemployment insurance rate. Usually, this rate is fixed by legislation. It remains effective unless a legislative change increases or decreases the rate or until the employer has met the state's requirements to qualify for a merit rate based on its unemployment experience. In some states, new employer rates are based on the employers' Standard Industrial Classification (SIC) code. Employers in specific industries (such as: construction, mining or manufacturing) may be assigned a higher new employer rate, due to traditionally higher rates of unemployment in the industry. Also called a standard rate or starting rate.

Nil Refers to returns that are filed with no reported liability. Nil returns are required by some agencies to keep the employer's tax identification number active on the agency records.

Non-cash Fringe Benefits Benefits provided to employees in some form other than cash (i.e., company care, health or life insurance, parking) which may be taxable or nontaxable.

Non-charged Benefits Unemployment insurance benefits, which are paid to claimants, but are not charged against a base year employer.

Noncustodial Parent A parent who does not have primary custody of a child but who is responsible for financial support.

Nonexempt Status Employee If you are a "nonexempt" employee, generally you are protected by the wage and hour laws of your state, or of the Federal government (Fair Labor Standards Act). Wage and hour laws require employers to pay at least a certain minimum hourly wage rate and a premium rate for "overtime" work. They are also a guide for determining which on-the-job hours constitute "work," and thus must be compensated.

Non-monetary Determination A decision made by the initial authority based on facts related to an issue under the following conditions: (1) the present, past, or future benefit rights of a claimant or claimants are involved; (2) there are identifiable documents showing the type and disposition of an issue, the material facts considered in arriving at the determination, and the legal result; and (3) the determination, if it involves the denial of benefits, is issued in the form of a written determination notice to the claimant. (No determination denying benefits may be considered to be a non-monetary determination until the claimant has been afforded an opportunity to furnish any facts he/she may have relating to disqualifying information received from other sources.)

Non-monetary Issue An act, circumstance, or condition potentially disqualifying under State law.

Non-monetary Redetermination A decision made under statute, regulation, or well-defined policy specifically requiring the reopening of a non-monetary determination before the administrative appeal stage, and which affirms, reverses, or modifies such determination.

Nonprofit or Government Entities Nonprofit organizations state and local government entities and political subdivisions are exempt from FUTA under Internal Revenue Code Section 501(c)(3) but are still covered by state unemployment laws. Organizations deemed exempt from FUTA under the Internal Revenue Code are generally allowed the options of either reimbursing the state unemployment fund dollar for dollar with the amount of benefits paid to former employees, or paying unemployment taxes in the same system as for-profit employers. Some state agencies require non-profit and government entities to utilize only the reimbursing method.

Nonqualified Plan In the context of employee benefits, an employer plan that does not meet IRS qualification requirements.

Nonresident Alien An individual from a foreign country working in the US who does not pass either the "green card" or "substantial presence" residency test, but is subject to federal income tax on US source income.

Nonresidential Parent A parent who does not live with or have custody of a child but who is responsible for financial support.

Non-sufficient Funds (NSF) Referring to a bank account lacking the proper amount of funds to cover a debit; resulting in a monetary transaction that cannot be completed.

Non-trust Asset A non-custodial fund, such as Direct Debit of Fees.

NSF See Non-sufficient Funds.